HI SB1465

Amends Hawaii Revised Statutes Section 235-51.5(e) to require qualified members of electing pass-through entities to add their share of taxes paid by the entity to their taxable income when claiming a tax credit.

Maintains existing provisions allowing qualified members to claim credits for taxes paid by the pass-through entity and to carry forward excess credits to subsequent years.

Prohibits qualified members from deducting Hawaii state income taxes paid on their distributive share or guaranteed payments from the pass-through entity.

Applies to taxable years beginning after December 31, 2024.

Effective date is July 1, 3000 (note: this appears to be a typographical error in the legislation).